What if real estate investing could do more than generate returns? For Dr. Alex Schloe, residential assisted living offers an opportunity to combine real estate ownership with a growing need for quality senior care.
In a recent conversation with Dustin Miles of Momentum Multifamily, Schloe discussed his path from medicine to real estate investing, the different ways investors can participate in residential assisted living, and why he believes the sector deserves attention.
From Medicine to Real Estate
Schloe’s interest in senior care began early. His first job was at an assisted living facility, and his later experience as an EMT and physician gave him firsthand insight into the challenges older adults face when receiving care.
Those experiences led him to explore ways to make senior housing more personal and responsive to residents’ needs.
Residential assisted living typically involves smaller, home-like settings where residents receive help with daily activities such as bathing, dressing, meals, and medication management. Unlike traditional apartment communities, these properties combine housing with a care operation, making the business more complex but offering a different investment model.
Different Ways to Invest
Schloe outlined several ways to enter the sector, depending on an investor’s capital, experience, and desired level of involvement.
Investors can participate as limited partners in larger deals, own properties and lease them to experienced operators, lease homes and operate the business themselves, or own both the real estate and the operating company.
Each approach comes with different responsibilities and risks. Owning the real estate while leasing it to an operator may offer a more passive role, while running the care business requires hands-on management of staffing, resident care, and regulatory compliance.
Schloe shared examples from his group’s experience, including potential monthly cash flow from assisted living homes and projected returns from development and acquisition projects. He emphasized the income potential of the model, though actual results depend on the property, operator, market, and operating expenses. Projected returns are not guaranteed.
Why Senior Housing Is on His Radar
Schloe sees long-term potential in senior housing as the population ages and new construction struggles to keep pace with demand. During the interview, he discussed industry data pointing to limited growth in senior housing inventory and the potential for future shortages.
For investors, that imbalance could create opportunities—but demand alone doesn’t guarantee a successful investment. Local demographics, staffing availability, licensing requirements, affordability, and the quality of the operator all play a role.
Schloe also noted that investors interested in aging-related housing may want to explore independent living and 55-plus active adult communities, which can offer different operating models from assisted living.
A Different Kind of Real Estate Investment
Residential assisted living shares some fundamentals with multifamily investing, including property valuation, operating income, and asset management. The key difference is the care business behind the real estate.
For investors considering the sector, understanding that distinction is essential. The potential opportunity comes with added operational responsibilities, making due diligence and the selection of a capable operating team especially important.
To learn more, visit RowRoom.com, where Schloe offers educational resources for people interested in residential assisted living.
Listen to the full conversation with Dr. Alex Schloe on the Momentum Multifamily podcast for more on senior housing, investment strategies, and the realities of operating in this growing sector.